start ups landscape
TRANSCRIPT
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S u p p o r t e d b y G o o g l e F o r E n t r e p r e n e u r s
A BRIGHT FUTURE
TECH START-UPS IN INDIA
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The Indian Technology Start-up landscape has evolved to become the
fourth largest base across the world. Since 2010, there has been a
significant rise in the number of technology start-ups and today, our
country hosts more than 3,000 tech/digital start-ups. If the landscape
continues to evolve at this pace, then by the end of 2020 more than
11,500 start-ups are expected to get established in India, generating
employment opportunities for over 250,000 people.
Key indicators such as opportunities existing in the domestic market,
access to capital/mentors, and increased M&A and consolidationactivities clearly point towards the new evolution of the ecosystem.
Several founders are leveraging emerging technologies like big data
& analytics, augmented reality, internet of things and cloud computing
to come up with some of the best-i n-c lass techno logy-based
start-ups.
This report, titled ‘Tech Start-ups in India: A Bright Future’ is a first-of-
its-kind report undertaking an in-depth analysis of the various aspects
of the start-up ecosystem. The report clearly identifi es the current
scale and size of the start-up landscape, factors that are impacting
the growth of the overall ecosystem and steps that need to be taken
to make the environment more conducive for start-ups.
We hope this report would be useful to you and we welcome your
feedback and comments at [email protected]
Pari Natarajan
CEO, Zinnov
R. Chandrashekhar
President, NASSCOM
Foreword
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Executive summary
The start-up ecosystem is often described as young, innovative, aspirant
and futuristic. India, home to a new breed of young start-ups, has evolved tobecome the fourth largest base of technology start-ups in the world. Since
2010, the Indian Technology Start-ups landscape has seen a sharp rise in
the creation of new start-ups and this number is expected to cross 3,100
by the end of 2014. It is a hyper growth infl ection point for the Indian start-
up ecosystem, with growth, capital and acquisitions all coming together to
create a perfect storm.
The whole ecosystem is evolving and becoming more and more vibrant and
multiple indicators are pointing towards this direction. The Indian middle
class is becoming a voracious consumer of digital solutions. eCommerce,marketplaces and mobile apps are increasingly driving people online. Many
start-ups are incorporating emerging technologies in their solutions and
building global digital solutions from India.
Start-up funding is maturing signifi cantly in deal value and in diversity of
focus areas, and start-ups today have access to multiple sources of funding.
While start-ups are betting high on the ecosystem, demand for supportive
government policies continue to exist.
NASSCOM and Zinnov are delighted to present the fi rst-of-its kind report
titled ‘Tech Start-ups in India: A Bright Future’, which examines variousdimensions of the Indian start-ups ecosystem. This report is the result of
a comprehensive three-month study, during which detailed research was
carried out by the team at Zinnov to gather quantitative and qualitative data
and insights through primary and secondary sources. The whole process
involved personal interviews with various start-ups, VCs, Angel Investor and
Incubator/Accelerators, and extensive desk research.
Some of the key findings presented in this
report are:
India currently boasts of over 3,100 start-ups with•
an addition of 800+ new start-ups in 2014 alone.
If the landscape continues to evolve at this pace
then by 2020 more than 11,500 start-ups would
get established in India, generating employment
opportunities for over 250,000 people
The major growth drivers like large domestic•
market, access to capital/mentors, whitespace
opportunities and increased M&A activity are
accelerating the start-ups growth. Indian start-
ups, with their unique solutions, are witnessing
increased traction in global whitespace opportunities
such as internet of things, augmented reality,
smart hardware, big data & analytics, cloud
computing, etc.
Domain solutions emerging – Ad-Tech, Edu-• Tech and Health-Tech and other niche solutions
emerging for healthcare, agriculture, etc.
Bengaluru and NCR are the top 2 start-ups•
destinations and cumulatively these two geographies
account for over 50 per cent of the start-up
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base. Looking at recent rounds of funding, NCR
tops as the investment destination. Over 59 per
cent of start-ups are focused on B2C categories
which is dominated by eCommerce and online
marketplaces; B2B segments are dominated by
big data & analytics, ERP & marketing solutions
Young entrepreneurs dominate the start -up•
landscape with over 73 per cent of founders in
the age bracket of less than 36 years. Most of
these founders with a strong consumer-centricapproach, have come up with some of the best-in-
class B2C start-ups. Women entrepreneurs have
also started to leverage the innovation economy
Scaling up and growth hacking-are key priorities for•
start-ups. Start-ups are able to hire best-in-class
talent from the industry by offering above average
compensation, stock options, enhanced growth
opportunities and fl exible work culture
Start-ups today have access to multiple sources•
of funding from VC/PE, angel investors,
banks and financial institutions as well as
incubators. Funding is maturing signifi cantly in
deal value and in diversity of focus areas. During
2010-14 timeframe close to USD 3 billion is
expected to be invested in Indian start -ups
The innovation imperative – leading to a rise in•
collaboration and partnerships – product firms with
platform players, IT services, global MNCs, CIOs
Given the vibrancy in the ecosystem, the M&A•
activity is on the rise in India. Acqui-hiring,
technology acquisition, market consolidation and
customer acquisitions are the primary drivers for
increase in M&A of Indian start-ups
While start-ups are betting high on the ecosystem,•
there is constant need to nurture this ecosystem.
Demand for supportive government policies
(ease of doing business, tax incentives, participation
in government contracts, availability of risk capital,
etc.) continue to exist. While the new government
has made the right announcements, there is a need
for directional efforts to see them implemented
Future of products – devices at the edge, logic at•
the core, fusion of IOT, SaaS, mobile solutions, data
analytics are leapfrog opportunities for India
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`
Key unmet needs &expectations of start-ups
Start-up supportecosystem in India
VC/PEinvestment trends
Technology focusareas and whitespaces
Technology product/digitalstart-up landscape in India
Angel investorecosystem in India
Scope of the report
To understand the evolution of the technology product and digitalstart-up landscape in India
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Inception yearOrganisation withinception year of 2010or later
HeadquarteredAn organisation that isheadquartered in India
Has founding teamwith Indian origin ANDproduct developmentlargely in India
Distribution
Undertakes the packaging,selling and marketing of theproduct/platform itself or through channel partners
Intellectual propertyThat has developed and/or owns the technology IP (includes IP-owned through acquisitions) and/or
That provides digital/technologyplatform for transactions and/orcustomer engagements
Technology product/digital start-up
Defi nition considered for the report
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This report has been co-developed by NASSCOM and Zinnov through a
comprehensive three-month study to understand the technology product
& digital start-ups landscape in India.
The preparation of this report has been facilitated by a number of
organisations and people who have extended great help to the NASSCOM
and Zinnov teams. We wish to sincerely thank all of them for their valuable
contributions without which this report would not have been possible.
First, we would like to thank all the industry members and other
colleagues, who went out of their way to provide detailed inputs andperspective of their services/clients/markets, etc. They offered great
support to this project by providing the requisite data and insights as
required by the team. This study has been greatly enriched by the valuable
insights and detailed inputs provided by various investors, angels as well
as other key stakeholders in the ecosystem.
We would also like to acknowledge the special contribution made by
Google for supporting us on various policy-related aspects as well as
formulating and fi nalising the numbers.
Finally, we would like to specially acknowledge the support offered by
NASSCOM research team for their efforts and contribution towards the
execution and completion of this report.
Acknowledgement
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Start-up Landscape Founders’ Profile
Growth Drivers Global Reach of Organisations
4 th LargestIndia emerges as the
start-up location globally73%Foundersless than36 years of age
48%have
MNCwork experience
36%Founderssolelyengineers
6%Womenfounders
28%of start-ups continue to
be the technology hotspots
Catching up
FastDelhi-NCR
Bengaluru
3,100+2014
11,500+
65,000+
250,000+By 2020
Large
Domesticmarket
WhitespacesEvolving
43%product/digital
organisationshave focus onglobal marketresulting in more
exits for investors
Increased
M&A
Focus Areas
ecosystem ofinvestors and mentors
59%B2C:
4%B2C/B2B:
37%B2B:
SECTION I – LANDSCAPE/SCORECARD
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Strong Growth Indicators - India
Start-ups created every year> 800
Funding** since 2010
USD2.9+billion
Active VCs/PEs in 2014
Angels in India550+
Incubators/Accelerators
Avg. valuationof start-ups
Ease of doingbusiness ranking
No. of investors
residing in the country
80+
*in India ~68 per cent of total start-ups listed on Angel List are tech. product/digital start-ups, same ratio has been applied to the total number of start-ups listed on Angel List for acountry to arrive at the ‘No. Tech. Product/Digital Start-ups’**Includes projected investments by VCs, PEs, angels, incubators/accelerators during 2010-14 in start-ups incepted during 2010-14***Data from Angel List and World Bank Group (Ease of Doing Business rankings are benchmarked to June 2014)Source: Microsoft Ventures, Zinnov Product/Digital Start-up Database, Angle List
70+
Tech.Product/Digital
Start-ups byKey Countries*
US
41,500+ 3,500+ 3,300+ 3,100+ 2,700+
UK Israel India Canada
US
USD 4.2million
7 th
25,000
India
USD 2.3million
142nd
770
Still a Lot of Ground to Cover***
1 4
421 3 5
3,100+ start-ups in India; fastest growingcommunity; 4 th largest in the world
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Growth Drivers
• Large domestic marketfor tech and proximity ofstart-ups
• Leverage India as testbed before going global
• A number ofwhitespaces withinconsumer internet,big data, cloud andIOT, etc.
• Evolving ecosystem of inves- tors and mentors
• Entrepreneur peer group issupporting the developmentof other start-ups
• As M&A is witnessingincreased momentumin India, investors aregetting more exitopportunities
Multiple drivers supporting the Indian start-upecosystem to reach its hyper-growth infl ection point
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Technology Start-ups by Inception Year
Total numberof start-ups
Total numberof jobs created
Year 2020 is expected to see a remarkable rise in the base of start-ups, and the total number of start-ups are projected to grow at a CAGR of ~24% between 2014 and 2020
This will equally impact the growth of Indian start-ups jobs, which is expected to grow at a CAGR of ~25%
Note : P = Projected; E = Estimated
Source : Angel List, Zinnov Product/Digital Start-up Database; Venture Intelligence, YourStory.in
2020P
2014E
2013E
2012
2011
2010480+
525+
590+
680+
805+
2,000+
11,500+
3,100+
250,000-300,000
65,000-75,000
2020P
2014E
2020P
2014E
Further acceleration expected – base is likely toexpand four-folds by 2020
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Top focusareas of
start-upsby location*
*For Directional purpose onlySource: Zinnov Product/DigitalStart-up Database
Start-ups by Location
(Total = 3,100+)
Hyderabad
8%Pune6%
Chennai
6%
Bengaluru
28%
Mumbai
Top 6 locationsaccount for 90% of the
start-up activity in India
Kolkata, Ahmedabad,Cochin, Jaipur andThiruvananthapuramare the nextemerging locations15%
Delhi-NCR
24%
Delhi-NCR Mumbai Hyderabad Pune ChennaiBengaluru
eCommerce/Aggregators
Big data & analytics
ERP
Productivity & collaboration
Education
Marketing & advertising
Bengaluru and Delhi-NCR emerging as start-uphotspots; reasonable traction in other locations
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Discernable shift observed towards the B2Csegment, dominated by eCommerce and onlinemarketplaces; B2B dominated by big data &
analytics, ERP and marketing
Overall
Focus Areas of Start-ups
2014 2010
B2B B2C B2C/B2B
Cumulative
Across years
B2Cfocus ofstart-ups
B2Bfocus ofstart-ups
B2C/B2B: 4%
Note: Analysis based on a sample of 521 start-ups across years*Others include Communication/Collaboration, productivity, gaming.HW and other consumer internet**Others include apps/web dev, infra mgmt solutions, content mgmt,data recovery, gaming, HW, mobility solutions, security and othersSource: Zinnov Product/Digital Start-up Database
2010 2012 2014 Overall
eCommerce
Aggregator &
online marketplace
Education
Social media
Travel
Others*
2010 2012 2014Big data& Analytics
ERP
Marketing& advertising
Communication/Collaboration
Productivity
Others**
45% 42%22%
39%
5% 21%
26%
21%18%
6%16%
11%13% 7% 10% 7%5% 4% 6% 7%
15% 19% 19% 16%
23% 30% 27% 28%
33% 26% 23% 26%
6% 16% 13% 10%6%
9%13% 9%8%
5% 7% 8%
24% 14% 17% 19%
5%
26%
69%
8%
40% 52%
B2B
37%B2C
59%
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~73% Young founders (age
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…With a major focus on emerging opportunitiesaround B2C segment
Note: Analysis based on a sample sizeof 613 start-ups across yearsSource: Zinnov Product/Digital Start-up Database
Aggregator
Gaurav Munjal
Founder & CEOB.Tech from NMIMSSingle round of funding
Aggregator
Rahul Yadav Co-Founder & CEOB.Tech from IIT BombayMultiple rounds of funding
eCommerce
Gaurav KushwahaCEO & Founder
B.Tech from IIT Delhi
Multiple roundsof funding
Recruitment PortalSantosh Yellajosula
Co-Founder & VP
M.Sc from BITSSingle round of
funding
Business Analytics Arjun PillaiCo-Founder & CEO
B.Tech from Cochin UniversitySingle round of funding
ERPManasij GanguliCo-Founder & CEO
B.E. from BIT, MesraSingle round of funding
58%founders focus
on B2C segment
MajorFocus Areas
36%founders focus
on B2B segment
MajorFocus Areas
6% founders focus onB2B/B2C segment
MajorFocus Areas
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16%
68%
16%
0%
26%7%
37%
30%
Co-Founder & CEOMasters fromNMIMSUSD 9 million infunding
Successful Women
Entrepreneurs
Top Focus Areas of
Start-ups
Founder & CEOBE from CRSCESingle round offunding
eCommerce
B2C
Aggregator
Education
Marketingplatform
84% Age Wise Break-Up ofStart-up Founders
36-45 Years
Others* BE/B. Tech
MBA
ME/M.Tech/MS/MCA
45+ Years
26-35 Years
Up to 25 Years
Education Break-Up ofStart-up Founders
Note: Analysis based on a sample size of 31 start-ups*Others include: ‘Other Undergraduates’, ‘Others Masters’ and ‘Doctoral’ degreeSource: Zinnov Product/Digital Start-up Database
Women entrepreneursin start-up landscape
Aggregator
~6%
Sreepriya Koppula
Ruchi Garg
Richa Kar
FounderCertificateProgramme fromStanford UniversitySingle round offunding
B2B13%
B2B/B2C
3%
Women entrepreneurs are starting to leverage theinnovation economy
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Large enterprises are collaborating with start-ups to enhance future growth
Collaboration drivers
Serving unmetneeds of clients
Thrive for innovation
Business transformation
Global market access
High business value to clients
Extended support
Branding/sales & marketing
Access to lients
Competencies offered
Benefits achieved
Collaboration models
Corporate acceleratorProgramme
Intrapreneurshipprogramme
Enterprise partnership
Corporate fundsprogramme
New businessopportunity
Client connects
Product credibility
Support in solutionintegration
Supportinginfrastructure
Goodwillenhancement
Deeper clientengagement
Transition toa solution provider
Bundle servicesaround aninnovative product
Start-upsEnterprise
Innovation
Harvest new ideas
Compact productdevelopment cycle
Competencies offered
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The global competitiveness of Indian technologystart-ups is accelerating…
Global Success Stories from India
43% product/digital firmshave focus onglobal markets
Young start-Ups
• Big data & analytics• Marketing &
advertisement
• Mobility
• ERP
• Comm/Collaboration
• Cloud computing
• Niche use cases
Set Up 2010 Onwards
Growth firms
• Enterprise security
• Application software
• Analytics
• Productivity
• Emergence of B2C
Set Up Pre 2010
Early movers• B2B enterprise products
• BFSI vertical focus
Set Up Pre 2000
More and more start-ups are exploring global markets
Since 2010 there has been a significant growth in the spectrum of firms that have focus and presence at a global level
Source: Desi Products Videshi Markets: Indian Software Products Building Global Business – NASSCOM & Zinnov
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…with the huge domestic market driving demand
Largeenterprises Public listedorganisa tions
Organisations inForbes 2000
Internet users
Mobile phoneconnections
Smartphone users
Tech-ready SMBs
SMBs with PCs
SMBs withmobile phones
Large enterprises
1
Cust omers
3
5,000+
10+million
3,500+
5+million
100%
250+ million
115+millionn
900+ million
65+
Small& mediumbusinesses
2
India domesticmarket
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Global Market (USD) Opportunity
Easy Access to Capital
US & EU represent over two-third of the global technology market
US domicile opens more doors for VC & M&A activity(50-100 times bigger early stagefunding ecosystem than India)
Business Environment/Laws in India
Anecdotal evidence of low adoptionof products by Indian firms
& long sales cycles
Global WhitespaceOpportunities
Over USD 100 billion+ of SMAC*led level playing opportunities** in
global markets for Indian firms
Many start-ups leverage India as the test market and then start focusing at the global market
Start-ups with a global focus are setting their units outside India as well, as they want to be close to their customers
*Social, Mobile, Analytics & Cloud;**by 2015
Source:Desi Products Videshi Markets: Indian Software Products Buildin Global Business – NASSCOM & Zinnov;
Key factors for Indian start-ups to focus onglobal markets
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Start-ups adopting innovative approaches toattract and retain best-in-class talent
InternshipsCollegerecruitment
HRagenciesHackathons
& meetupsReferrals
Socialnetwork Job
portals
Hiring Channelsused by Start-ups*
Technology function
Sales function
opportunity to grow
82%start-ups paymore than themarket median**
83%start-ups use stockoptions for long- term incentives**
63%start-ups have definitivelink between performanceand compensation**
*Based on NASSCOM’s analysis of 529 start-ups (http://10000startups.com/skills-infographic/)**Based on analysis of 40 start-ups across four business sectors, by Hay Group in partnership with Canaan Partners from the report titled ‘How Indian start-ups are building to last’
57%
25% 20% 16% 9% 7%7%
interesting work
Operations
open culture
A
Value Propositionsby Functions toAttract Top Talent**
C
Monetary Benefits are Getting CompetitiveB
Talent
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Hiring technology professionals is a top priority forstart-ups
Source: http://10000startups.com/skills-infographic/
Top Skills Start-Ups are Looking For
Productmanagement
Salesbusiness
Marketing
Operations
Finance
HR
Technology
Others
66%
66%
20%
30%
14%
7%
80%
14%
20%
14%
14%
22%
22%
25%
41%
57%
61%
Others
C/C++
Ruby on rails
Python
PHP
AJAX
CSS3
HTML5
Java
Topprogramming
skills
Topmarketing
skills
9%
25%
35%
38%
38%
70%
Others
Communitymanagement
Online advertisement/PPC/PPM
SEO/SEM
Growthhacking
Inboundmarketing
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Start-Up Landscape Delivery Platforms
Start-ups Addressing
Whitespaces /EmergingTechnologies
>25%start-upsleveragecloud as the delivery
platform
350+ Start-upsBig Data & Analytics
Security
AdTech
HealthTech
EduTech
Gaming
35+Start-ups
100+Start-ups
30+Start-ups
190+Start-ups
100+Start-ups
50+Start-ups
30+Start-ups
35+Start-ups
30+Start-ups
800+Start-ups
Analytics& ERPemerge as keycloud workloads
>7%start-upsprovideenterprisemobilityplatforms
>26%start-upsuse mobileapp as aprimarydelivery mode
Cloud
Mobility
Payment Solutions
Hardware
IoT
AugmentedReality
Cloud
SECTION II – EMERGING TECHNOLOGY TRENDS
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Ingenious start-ups are emerging infuturistic technology areas and deliveringdomain-specifi c solutions
*Analysis based on a sample of 521 start-ups across yearsSource: Zinnov Product/Digital Start-up Database
Internetof Things
Big Data & Analytics
Founder worked with Veritas
(part of Symantec)
Co-founders workedwith MindTree for
10+ years
AugmentedReality
Founder worked withIntel & AMD
CloudComputing
Founder worked withRealcom Inc.
Security
Co-Founder workedwith Philips
Electronics India Ltd.
Payments
Founder workedwith
PayPal
EduTech
Founder workedwith
Cisco Systems
>25% start-ups leverage cloud as
the delivery platform
>7% start-ups provide enterprise
mobility platforms
Analytics & ERP emerge as keycloud workloads
Many start-ups indifferent to location of cloud datacentre
>26% start-ups use mobile appas a primary delivery mode
Cloud* Mobility*
Gaming
Founder workedwith DreamWorks
Animation
Hardware
Founder workedwith Intel
AdTech
Co-founders workedwith Bain &Company
HealthTech
Co-foundersworked with
Sun Microsystems
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Augmented/Virtual reality is already being touted asone of the most signifi cant marketing transformations
Source: *Juniper Research, Zinnov Product/Digital Start-up Database
Major Use Cases: Marketing & Advertising,
Healthcare and Visualisation SolutionsQuick Facts
Hyderabad
2011
Chennai
2012
Bengaluru
2012
Mumbai
2011Growth in AR is largely driven byimprovements in computing
hardware and internet connectivity
Consumer mCommerceis emerging as one of the top growthareas for augmented reality
Globally, the market size ofaugmented reality basedsolutions is expected to grow to
USD 2 billion by 2015*
30+Augmented reality start-ups in India
• Healthcare• Communication• Virtual Trial Room
• Virtual JewelleryTrial Solution
• Marketing & Advertising
• Customer EngagementPlatform
• Marketing & Advertising
Virtual Home Design
‘I f Thi ’ i i i ifi
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‘Internet of Things’ is opening up signifi cantwhitespace opportunities for start-ups
Source: *Machina Research; Zinnov analysis, Cisco, Zinnov Product/Digital Start-up Database
Major Use Cases: Wearable Tech, Home
Automation and Fleet ManagementQuick Facts
Ahmedabad
2012
Kochi
2012
Pune
2013
Mumbai
2014USD 1 billion+ investment committment byIndian Government on building
100 smart cities
IESA (India Electronics &Semiconductor Association) and
TiE Bengaluru have signed aMoU to promote IoT start-ups
India marketopportunity of
USD 10-12 billionby 2020
35+IoT start-ups in India
Wearable
technology for ahealthier lifestyle
GOQii
A wearable device to control anysmart device
A connected carplatform forremote monitoring
connecte c
GPS vehicle tracking& fleet managementsolutions
H d i h f d
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Hardware is the new software and start-upsare targeting niche areas with HW offerings
Source: Huffington Post, Tech Crunch, Zinnov Analysis, Zinnov Product/Digital Start-up Database
Major Use Cases: 3D Printing, Payment
Solutions and AutomationQuick Facts
2013
2013
2013
2011
30+HW start-upsin India
Mobile paymentsolutions
An HDMI dongle thatconnects all the media to the TV wirelessly
Warehousing anddistribution automationproducts, fleet ofmobile robots
Bengaluru
NCRHardwarefirms such as Nest,GoPro, Beats,
Jawbone, Oculus haverecently accorded amulti-billion dollar valuation
Low-cost (
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Over 300 BD&A start-ups offering hugeopportunities in both global and Indian market
*Big data and analytics**Source: NASSCOM and Crisil, Zinnov Product/Digital Start-up Database
Major Use Cases: Big Data and
Social Media AnalyticsQuick Facts
Kochi2011
2010
2012
four-fold growth inanalytics start-ups in Indiain the last four years
IBM innovation centre inBengalore to partner with
100 big data and Internet ofThings start-ups in India
Big data & analyticsmarket in India to reach
~USD 1 billion in 2015,growing 83% annually**
350+BD&A* start-ups in India
Machine-to-machinebig data analyticsplatform
Data visualisationand analytics tool
Real-time predictiveanalytics based onmachine data
2011
Social mediaanalytics platform
Chennai
Bengalure
With 800 t t l d ti i
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With over 800 start-ups, cloud computing isemerging as the fastest growing technology
Source: *EMC and Zinnov; NASSCOM, Zinnov Product/Digital Start-up Database
Major Use Cases: BD&A, ERP, Comm./Collaboration
and Productivity Solutions
Quick Facts
2012
2011
2012
In India, the cloud market isestimated to grow to
USD 4.5 billion by 2015*
>25% of start-ups inIndia are already usingcloud as the primarydelivery medium
By 2020,at least80% of IT industrygrowth would bedriven by cloud andmodern IT solutions
800+cloud computingstart-ups in India
Cloud-basedhealthcareCRM solution
Self-service
platform for bigdata analytics
Cloud-based videoconferencing software
Bengaluru
2011
Chennai
Cloud-based billingplatform for subscriptionbusiness
35+ start ups in security domain; new delivery
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35+ start-ups in security domain; new deliverymodels are emerging
Source: CRN, Economic Times , Zinnov Analysis, Zinnov Product/Digital Start-up Database
Major Use Cases: Cloud-based Security and Mobile
SecurityQuick Facts
2011
2013
2012India IT securitymarket is expected todouble by 2016
BYOD trend is fuellinggrowth of solutions in the areas of datasecurity andauthentication
Enterprise security market inIndia is expected to reach
USD 234million by the end of
2014, growing at about 16% compared to 2013
35+security firms in India
Enterprise mobilesecurity firmworking in thespace of "Bring Your Own Device"
Enterprise cloud securitysolutions, focusing oncloud security andaccessibility
Cloud-based mobilesecurity to securemobile applicationsfrom getting hacked
2010
Provider of innovativepattern-based twofactor AuthenticationSolution
Chennai
Bangalore
Advances in technology and increased penetrations
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Advances in technology and increased penetrationsof smartphones and internet are driving thepayments market growth trajectory upwards
Source: IAMAI, Zinnov Analysis, Zinnov Product/Digital Start-up Database
Major Use Cases: Online Payment SolutionsQuick Facts
2011
2011
2011
2010
800 million online transactionsmade in India in 2013
Delhi, Mumbai, Kolkata andChennai contributed about
60% of the totaldigital payment gatewaymarket size in 2013
Digital payments in Indiais expected to touchUSD 19.8 billion byDecember 2014, a
40% increasefrom previous year
50+payment solutionsfirms in India
Payment device with acard reader which canbe plugged into anysmart device or phone
Online paymentsolutions firm
Bengaluru
Mumbai
NCR
Payments platform to solve paymentissues faced byeCom. firms
Comprehensive weband mobile payment
solutions for merchantsas well as consumers
With 200 innovative start ups opportunities
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With ~200 innovative start-ups, opportunitiesunder Edu-Tech are booming
Source: Yourstory.in, Zinnov Analysis, Zinnov Product/Digital Start-up Database
Major Use Cases: Technology Platform,
Educational Content and Skills DevelopmentQuick Facts
2013
2013
Mumbai
2013
Cloud basedknowledgemanagementplatform
Bengaluru2012
Tablets foreducation
Social learning networkfor science for partici-pants from academia tocorporate research
Haryana
All-in-one software formanaging schools
190+Edu-Tech start-ups in India
India’s online educationmarket size is predicted to
grow to USD 40 billion by 2017
K-12 sector is expected to
reach USD 50 billion in 2015growing at an estimatedCompound Annual GrowthRate (CAGR) of 14 %
Over 150 millionstudents in India haveaccess to internet via their mobile phones
Ad Tech is disrupting the niche analytics market
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Ad-Tech is disrupting the niche analytics market
Source: IBEF, Livemint, Zinnov Analysis, Zinnov Product/Digital Start-up Database
Major Use Cases: Mobile Advertising, Marketing
Analytics and Ad Campaign Management
Quick Facts
2014
2012
2013
2012
eCommerce, telecom andFMCG and consumer durables
are the top three verticals
Digital advertisingmarket in India which
was USD 503.56 millionin 2013, will witness
35% growth by the end of 2014
Ad spending on mobiledevices growing at anannual average rate
of 46% while that onsocial media growingat an annual rate of
of 41%
100+Ad-Tech start-upsin India
Bengaluru
Pune
NCR
Ad platform forretargeting usersover mobile andsocial ad ecosystem
social referralad campaigns
Software ad campaigns& marketing analytics
AdTech product foradvertising &
marketing analytics
Tremendous opportunities exist in the Health-Tech
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Tremendous opportunities exist in the Health-Techdomain for start-ups
Accelerators dedicated solely to
healthcare start-upsare getting incepted in India
Source: Economic Times, Zinnov Analysis, Zinnov Product/Digital Start-up Database
Major Use Cases: Search, ERP and
Records Management
Quick Facts
Indian health-techstart-ups are proving their capabilities in theglobal market as well
India's healthcare IT marketis expected to grow to
USD 1.45 in 2018, more than three times the USD 381.3 million reached in 2012
30+Health-Tech start-ups in India
2012
2012
2012
Cloud-basedmanagement
software for doctorsand patients
Bengaluru
Durgapur
2013
Patient recordsmanagementsoftware
Doctor and hospitalsearch andinformation portal
Pune
Online healthcaresearch
Gaming market in India provides huge opportunity
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Gaming market in India provides huge opportunity for digital gaming start-ups
Source: IBN Live; Zinnov analysis, Zinnov Product/Digital Start-up Database, FICCI-KPMG report
Major Use Cases: Casual and Mobile GamesQuick Facts
2011
2012
2010
2011
2011
Bengaluru
Pune
Mumbai
Online and mobilegames for variousplatforms iOS and Android game
developer/publisher
A game developmentstudio creating realistic,casual and social videogames for tablets andsmartphones
Develop casual andmobile games
100+Gaming start-upsin India
Casual gaming in Indiais expected to grow at a
CAGR of 32% over2010-15 period
Mobile casual gamingrevenue expected togrow at a
CAGR of 27.5% over2010-15 period
7 to 8 million people inIndia claim to play on aconsole regularly
SECTION III – FUNDING LANDSCAPE
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2010 2014
VCs/PEs Incubators/Accelerators
3
USD13 million
5
100+
5+ 25+ 50+
80+
USD1,818 million
70+
Investmentson the Rise
3/4 of Total VC/PE Funding
2010 2014
Angel Investors
3
USD4.2 million
8+
73+
USD32.2 million
90+USD
524 million
USD1,574 million
Bengaluru
Delhi-NCR
SECTION III FUNDING LANDSCAPE
An evolving ecosystem of VCs/PEs/angels/
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An evolving ecosystem of VCs/PEs/angels/incubators/support networks is accelerating thegrowth of Indian start-ups
VC/PE funds
Support Ecosystem
Angel Investors/Networks
Incubators/AcceleratorsAEvent Platforms/Support Networks
B
Academic/Training ProgrammesC
ManagementProgramme forWomen Entrepreneurs
Indian Institute ofEntrepreneurship
Wadhwani Centre
for EntrepreneurshipDevelopment
Banks/Financial Institutions D
133 MemberLending Institutions
70+ VCs/PEs have invested over USD 2 billion in
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70 VCs/PEs have invested over USD 2 billion inIndian start-ups in the past fi ve years
No. of Active Investors
13
2010 2011E 2012E 2013E 2014P
2010 2011E 2012E 2013E 2014P
265 217
549
1,818
9
138101
207
743
5 28 41 83 70+
3 37 55 101 100+
USD 4.2million
USD 7.2million
USD 3.9million
USD 5.4million
USD 7.7million
USD 8.9million
USD 2.5million
USD 3.3million
USD 5.7million
-
USD 4.2million USD 6.9million USD 4.9million USD 7.8million USD 9.4million
Total No. of Deals
Average Deal Size (B2C)
Average Deal Size (B2B)
Average Deal Size (Overall)
Year-on-Year Investment Commitment in Start-Ups**(in USD millions)
Investment Commitment inStart-ups Excluding eCommerce**
Quick Facts*
*‘Average Deal Size (Overall)/(B2B)/(B2C)’ is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals >= USD 100 million; (E):Estimated, (P): Projected**Total ‘Investment Commitment’ is estimated based on ‘Avg Deal Size (excluding deals >= USD 100 million)’ and ‘Total No. of Deals’; For the year 2014, ‘Investment Commitment’ isprojected for the whole year based on the run rate so farSource: Zinnov Product/Digital Start-up Database
VCs/PEs are making heavy investments in the
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/ g yexpansion stage
Year-on-Year VC/PE Investments by
Stage of Funding*
Start-up Inception Time
1,818 (P)
13
9
4 13
Seed Stage(USD 5-20 million)
Early Stage(>USD 1-5 million)
Expansion Stage(>USD 20 million)
77
259
1,470
USD 0.5million
2010 2014
Illustrations of Start-up by Stage of Funding
Received Across Years
*‘Investment by stage of Funding’ is based on ‘Avg Deal Size’ (excluding deals >=USD 100 million) and ‘Total No. of Deals’, and using the ‘Total Investment Commitment’projected in the previous slide as base; (E): Estimated, (P): ProjectedSource: Zinnov Product/Digital Start-up Database
Seed Stage Early Stage
Growth Stage Expansion Stage
(in USD million)
USD 0.8million
USD 4million
USD 4million
USD 5million
USD 3.5million
USD 0.8million
USD 0.5million
USD 15million
USD 17million
USD 19million
USD 210million
USD 65million
USD 627million
USD 45million
USD 17million
Average VC/PE investment sizes have more than
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g /doubled for younger start-ups
VC/PE Investments (USD million)
by Start-up Inception Time**
Average Deal Size by Start-up Inception Time*
Average Investment/Investor by Start-upInception Time*
Start-up Inception Time
1,1818 (P)
186
1,632
13
2010 2014
*‘Average Deal Size’ and ‘Average Investment/Investor’ is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals >=USD 100million; (E): Estimated, (P): Projected**‘Investment by Start-up Inception Time’ is based on ‘Avg Deal Size’ (excluding deals >=USD 100 million) and ‘Total No. of Deals’, and using the ‘Total Investment Commitment’ projected in the previous slide as base; (E): Estimated, (P): ProjectedSource: Zinnov Product/Digital Start-up Database
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g ynow a lot more holistic in B2C & B2B segments
Marketing &advertising
Big data& analytics
Productivity
ERP
Communication/Collaboration
Others**
eCommerce
Aggregator &online marketplace
Travel
Social media
Education
Others*
100%34%
64%
1%
67% 61%40%
53%
33%
11%
16%
15%
14%
4%
20%12%
11%11% 9%2%
11%2%9%
Share of No. of VC Deals by Start-up Type
B2B B2C B2C/B2B
Cumulative
Across Years
Shareof B2Cfocused
VC deals
B2C/B2B
5%
Note: Analysis based on a sample of 237 deals across years*Others include comm/collaboration, productivity, gaming, and other consumer internet; **Others include apps dev/web dev, security solutions, HW, contentmgmt, infra mgmt solutions, mobility solutions & others.Source: Zinnov Product/Digital Start-up Database
B2B
32%B2C
63%
2010 2012 2014 Overall
2014 2010
Overall2010 2012 2014
21% 16% 20%
21%
16%
18%
14%
14%
16% 18%
7%16% 9%8% 7%
21% 28% 28%Share
of B2Bfocused
VC deals
VC/PE funding is maturing signifi cantly in deal
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g g g y value and in diversity of focus areas
CRM Aggregator
Communicationtool
*Top 5 Investors based on total amount invested during 2010-14 in start-ups incepted during 2010-14 in B2B and B2CSource: Zinnov Product/Digital Start-up Database
Travel
Business Resiliency& Service Availability
CRM
Business Analytics
ContentManagement
RoboticsCRM
eCommerceeCommerce eCommerce
Travel
Communication tool
Illustrative
eCommerceSecuritySolutions
Location BasedServices
eCommerceTravel
MajorInvestments
by Top 5Investors inB2B firms*
(Illustrative List)
MajorInvestments by
Top 5 Investors inB2C firms*
(Illustrative List)
NCR & Bengaluru continue to attract a large part
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of VC/PE investments
Year-on-Year VC/PE Investments by Location* Total VC/PE Investments by Location*
Over the past two years, NCR has seen the highest investments by VCs/PEs, followed by Mumbai
Chennai and Pune are also catching up fast
*‘Investment by Location’ is based on ‘Avg Deal Size’ (excluding deals >=USD 100 million) and ‘Total No. of Deals’, and using the ‘Total Investment Commitment’ projected in the previousslide as base; (E): Estimated, (P): Projected
Source: Zinnov Product/Digital Start-up Database
Others Pune Chennai Mumbai Bengaluru NCR
1,574
524
1099348
513
97% of funding inNCR is towards
B2C start-ups
NCR and Bengaluruaccount for ~3/4 of
the total investment
4
52
9
80
221
38
333
9
62
374330
0.1 1.50
50
100
150
200
250
300
350
400
2010 2012 2014
NCR Bengaluru Mumbai ChennaiPune Hyderabad Others
1,200
1,128
A m o u n t I n v e s t e d
Includes ~USD 950 millioninvestment in Snapdeal,Hike and Jabong
Includes ~USD 250million investmentin Olacabs
Quick Facts
(in USD million) (in USD million)
A number of VCs/PEs are maturing signifi cantly in
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the Indian context
Avg: 3.6 R a n k b a s e d o n A m t I n v e s t e d * *
*Rank Based on No. of Deals: Percentile rank (on a Scale of 0-10) of 20 Investors based on the number of investment made during 2010-14**Rank Based on Amt Invested: Percentile rank (on a scale of 0-10) of top 20 Investors based on total amount invested during 2010-14, The top investor is ranked 10, second one isranked 5 and rest of the investors are given percentile ranksSource: Zinnov Product/Digital Start-up Database
0
1
2
3
4
5
6
7
8
9
0 1 2 3 4 5 6 7 8 9 10
No. of Deals: High, Amt Invested: High
No. of Deals: High, Amt Invested: LowNo. of Deals: Low, Amt Invested: Low
Softbank
Avg: 2.1
Tiger Global
CDC Group
Bharti Softbank eBay &Saama Capital
Steadview Capital Bessemer VenturePartners
Ru-NetHoldings
Intel CapitalCannanPartners
IDG Ventures India
SAIF Partners
IndoUS Venture Partners
Kalaari Capital
Matrix PartnersNexus Venture Partners
Helion Venture PartnersSequoia Capital
Accel Partners
Analysis of Top 20 VCs/PEs (Based on Total Amount Invested)
Rank Based on No. of Deals*
No. of Deals: Low, Amt Invested: High
550+ angel investors focusing on India market,
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~8X growth in total investment since 2010
*‘Average Deal Size (Excluding Outliers)’ is based on publicly available deal values minus deals where an individual/Angel network has invested >=USD 1 million; (E): Estimated, (P): Projected‘Amount Invested’ is projected for each year based on ‘Average Deal Size (Excluding Outliers)’ and ‘Total No. of Deals’For the year 2014, ‘Total No. of Deals’ and ‘Amount Invested’ is projected for the whole calendar year based on the run rate so farSource: Zinnov Product/Digital Start-up Database
Number ofActive AngelInvestors(Individuals)
Total No.
of Deals
1:1
AmountInvested
Average DealSize(Excluding Outliers)
8+
3
USD 4.2million
USD 9.1million
USD 23million
USD 33.9million
USD 32.2million
29+
19
48+
45
112+
95
90+
73+
Total 550+ AngelInvestors Focusedon India Market
Angel Investors Ecosystem in India*
2010 (E) 2011 (E) 2012 (E) 2013 (E) 2014 (P)
USD416,000
USD476,000
USD312,000
USD368,000
USD80,000
Angel investments are accelerating for mature
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start-ups
Start-up Inception Time
32.2 (P)
2010 2014
10.6
21.7
4.2
Angel Investments ($ Mn) by Start-up
Inception Time**
Average Deal Size by Start-up
Inception Time*
Angel investment is not restricted to select areas, investors are ready to bet on innovative ideas
Past four years have seen a gradual shift in investment from the earlier dominant sectors to new upcoming sectors in both B2B and B2C
*‘Average Deal Size’ is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals where an individual/Angel network hasinvested >=USD 1 million; (E): Estimated, (P): Projected
**‘Investment by Start-Up Inception Time’ is estimated based on ‘Avg Deal Size’ (excluding deals >=USD 1 million) and ‘Total No. of Deals’, and using the ‘Amount Invested’ projected in theprevious slide as base; (E): Estimated, (P): Projected
Source: Zinnov Product/Digital Start-up Database
Inception Time: 2-5 YearsInception Time:
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also getting a lot more holistic
Share of No. of Angel Deals by Start-up Type
B2B B2C B2C/B2B
Cumulative
Across Years
B2C/B2B
6%
Note: Analysis based on a sample of 200 deals across years*Others include comm/collaboration and other consumer internet; **Others include apps dev/web dev, security solutions, HW, content mgmt, & others.Source: Zinnov Product/Digital Start-up Database
Big data& analytics
Productivity
Marketing &advertising
ERP
Communication/Collaboration
Others**
eCommerce
Aggregator &online marketplace
Travel
Social media
Education
Others*
5%
B2B
34%B2C
60% 100%
48%
16%37%
19%
16%
20%
19%
16%
14%
10%
21%
13%5%
26% 3%
5% 13%
2010 2012 2014 Overall
38%56%
67%
33%
2014 2010
Overall2010 2012 2014
20%6%
19%
13%18%
14%
13%
6%
14%100%
13%
12%
13%
20%
12%
11%
20%
47%29%
Share of B2Cfocused
angel deals
Share of B2Bfocused
angel deals
Over 80+ business incubators and accelerators areidi d t t t t t
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BRIGHT FUTURE
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providing seed stage support to start-ups
Incubated 60+ Start-ups
Consumer Internet Big Data & Analytics Productivity GIS LocationUnified Communication
Incubated 160+ Start-ups
Incubator/Accelerator Ecosystem in India
Top Focus Areas in 2014
Incubated 230+ Start-ups
Apart from on premise guidance and support, some incubators are also providing virtual incubation to start-ups
Incubators/Accelerators with exclusive focus on specific/niche areas are emerging in India
Source: Zinnov Product/Digital Star t-up Database
50+Public
Incubators
25+Private
Incubators
5+MNC
Accelerators
Successful entrepreneurs are coming forward tot th i t t
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support other emerging start-ups
• Guidance from entrepreneurs who have already done it before• Help in building connections with other mentors, investors and customers• Act as a potential customers and test the product in beta stage• Provides much needed encouragement and motivation
*Source: The Economic Times
GSF has roped in redBusfounder Phanindra Sama todeepen mentoring and supportinfrastructure
Indian entrepreneurs are mentoring start-ups through various channels
Dorai Thodla, founder ofiMorph, Inc., providesmentorship throughTiE Chennai
The Bansals of Flipkart madeseed investment in News inShorts & are mentoring thestart-up
In Mobi's co-founder andCTO Mohit Saxena ismentoring App Virality
1
4
3Mentoring through
Incubators/Accelerators
Mentoring throughsupport
platforms
Entrepreneurs turned Angel
Investor &mentoring the
investeestart-up
2Mentors
fromNetworks
How P2P mentoringhelps start-ups
Business incubators and accelerators provide themuch needed hand holding to the start ups
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much needed hand holding to the start-ups
Connect entrepreneurs to peers, mentors and potential long-term advisors to the firm
Connect with local venture funds and angel investors to raise funds
Source: GSF India, Microsoft Ventures India, Startup Village
Mentorship &
Networking
Help start-ups build partnerships and business relationships to launch products in their target markets
Partnerships
Start-ups which are a part of the incubation programme are offered office/workspace,shared administrative services and some even offer seed fund
Workspace/Funds
Start-upshave
graduatedfrom the
AcceleratorProgramme
Conferences/Events
have beenorganised
toshowcase
start-up talent
Angels areassociatedwith GSF
Acceleratorprogramme
Start-upshave
graduatedfrom the
AcceleratorProgramme
Mentorsassociatedwith the
Accelerator
Averagefunding
received bystart-ups
part of theAcceleratorprogramme
$215 K
Start-upsare
supportedby
including virtual
incubatees
Regularincubatees
Partnersincluding VCs,angels,banks
650+ 45+50+
1506436 6 18
Event platform and support networks are fuellingstart up growth
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start-up growth
2014 >122009-10 2-3
Number of NationalStart-up Events
Smaller group meetings happen almost everyweekend
Start-ups get access to mentors and experts; access to incubators is also fast tracked
Hands-on-experience where entrepreneurs and aspiring entrepreneurs find out the viabilityof their start-up ideas
Source: The Economic Times, National Entrepreneurship Network, Yourstory.in, Start-ups Unplugged
Mentorship &Idea Viability
Technology/Start-up conferences organised where start-ups showcase their talent andideas to potential investors
Connect start-ups with other entrepreneurs and thus help them build a network of their own
Networking& Funding
Eventswere
organisedin 2014
eWeek:EntrepreneurshipWeek, Annual Event
MemberAcademicInstitutions& partners
supportaspiring &growing
entrepreneurs
Participants took part in the events in
2014
Entrepreneurstories havebeen profiledby YourStory
Nichereaders
from Indiaand
across
the world
Entrepreneursprovided
networkingopportunities
via
conferencesand meetups
50,000
Entrepreneurshave attended
the event
Fund hasbeenraised
Start-upshave beenlaunched
7,000 75$120 Mn
3,000,00014,0005,000 450 700,000
Multiple start-up specifi c academic/trainingprogrammes are providing mentorship
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programmes are providing mentorship to entrepreneurs
Provide consultancy and monitoring service to MSMEs/potential entrepreneurs andenhance employability of participants
Source: Start-up Leadership, NSRCEL
Consultancy
Design and organise training activities for different target group and undertake researchin the areas relevant to entrepreneurship
Training
The training and academic institutions may also provide incubation support to start-upsIncubation
Incubatees till date
Partners whichinclude academic
institutions,government
agencies &industry experts
Events havebeen
organised tilldate to
promoteentrepreneurs
35+ 7 167
Start-upshave been trained in
India
Faculty are a combinationof mentors who are
entrepreneurs, investorsand world experts,
and professors frombusiness school
150+ Faculty
SECTION IV – EMERGING TRENDS ANDRECOMMENDATIONS
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Increased M&A Activity
Favouring Factors toBranch Out from India
Enterprises acquiring start-ups
Start-up
Talent acquisitionTechnology gains to existing portfolio
Enterprises
Start-up consolidating with Start-ups
Start-upStart-up
Accelerate consolidationEnhanced customer base
Key Asks from the Government
A
B
Clear transparent framework for disbursement of thestart-up fund
Eligibility relaxation to participate in large scale
technology projectsRevised TDS laws
Relaxation from banks to secure financing/funding
Tax saving schemes on funding
Special Regulatory Zones (similar to SEZ) to testindustry products
C
Easy Access toCapital in the US
Global Market(USD) Opportunity
RECOMMENDATIONS
Given the vibrancy in the ecosystem and itspotential the M&A activity is on the rise in India
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potential, the M&A activity is on the rise in India
Large firms are acquiring Indian start-ups for talent and embedding innovative technology in the existing portfolio
Start-ups are acquiring start-ups to accelerate consolidation and extend reach to existing customer base
Acqui-hiring There's growing interest from Facebook, Google and Yahoo! in acqui-hiring from India
Technology Acquisition
Oracle acquired Bitzer Mobile in 2013. Bitzer augments Oracle’s portfolio and is expected to be a corecomponent to its mobile security strategy
Consolidation
Consolidation wave sweeping the consumer internet space
GoGrab.in merged with AnyCommerce in 2014
Flipkart acquired Myntra in 2014
Zovi acquired Inkfruit in 2013
Flipkart acquired Letsbuy in 2012
Customer Acquisition
Goozop a global digital agency, acquired Red Digital, an Indian social media agency to increase revenuefrom Indian operations
As M&A is witnessing increased momentum in India,investors are getting more exit opportunities
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investors are getting more exit opportunities
Tech M&A in India(Illustrative List)
201420132011
USD136 million
USD 31million
USD25 million
Not disclosed
Not disclosed
USD135 million
USD62 million
USD
43.4 million
Not disclosed
Not disclosed
>USD10 million
USD 300-
330 million
USD15 million
USD15 million
USD9 million
Source: Venture Intelligence, YourStory.in, NextBigWhat.com, Others
2012
Start-ups are betting high on evolving ecosystem,however a number of challenges are constraining
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however, a number of challenges are constraining the growth
• With long sales cycles,customer acquisition is amajor pain point
• High likelihood of receivables turning into bad debt
(5-10% probability)
Source: Zinnov, NASSCOM
• Despite maturing ecosystemsecuring funding is tough
• Start-up funding is perceivedas one of the most importantsuccess criterion
• Complex and stringentgovernment policies are amajor cause of concern
• Lack of execution clarity onexisting policies creates state
of uncertainty
Growth Barriers
Demand for supportive government policies continues to exist
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• Clear and transparent framework fordisbursement of the ` 10,000 crorestart-up fund
• Risk capital for first gen entrepreneurs,growth capital for serial entrepreneurand sector-specific allocations
Key Policy Related Asks from the Government
• Preferential treatments/relaxation ofeligibility criterion by government forstart-ups to participate in large scale technology projects
• Re-imagine TDS and allow start-ups topay taxes at the end of the year(instead of tax being deducted at source)
• Guidelines to public sector banks forrelaxation on debt financing terms/collateral/invoice requirements forworking capital asks
• Provide tax saving schemes on returnon VC/angel investments in start-upsand build ecosystem excitement
• Create Special Regulatory Zones (on thelines of SEZ) with regulatory flexibility to test best products in industries such as VOIP, Healthcare, BFSI, etc.
11
4
5 66
22
33
Though the Government is making right efforts to make the start-up ecosystem more conducive to growth, there is still a need for clear and transparent guidelines
Source: Zinnov, NASSCOM
continues to exist
About NASSCOM 10,000 Start-ups
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10,000 Start-ups is an ambitious attempt by India’s premier IT industry
body – NASSCOM to scale up the start-up ecosystem in India by 10x. The
programme is supported by Microsoft, Google, Intel, Verisign & Kotak.
10,000 Start-ups aims to enable incubation, funding and support for 10,000
technology start-ups in India over the next 10 years.The programme’s vision is to:
Foster entrepreneurship•
Build entrepreneurial capabilities at scale•
Strengthen early stage support for tech start-ups•
To meet these objective, the programme has brought together key
stakeholders of the ecosystem including start-up incubators/accelerators,
angel investors, venture capitalists, start-up support groups, mentors and
technology corporations. With 10,000 Start-ups NASSCOM aims to build
a vibrant ecosystem for technology entrepreneurship in India.
India’s largest platform to connect with the tech entrepreneurship
community
Under the aegis of 10,000 Start-ups, NASSCOM organises and supports
workshops, meet-ups, hackathon, pitches for technology entrepreneurs
building solutions for web and mobile in order to build a vibrant tech
start-up ecosystem in the country. Since its launch in April 2013, the 10,000
Start-ups has done about 350 events in 22 cities of the country which wereattended by a whopping 25,000 attendees.
In the last one and half years, 10,000 Start-ups has built a vibrant social
community for more than 100,000 followers and an opt-in mailing list of about
30,000 existing and aspiring entrepreneurs. The programme has also hosted
some of the global icons of the technology world like Eric Schmidt, Michael
Dell, Vinod Khosla, Sundar Pichai and more recently, Satya Nadella.
India’s biggest tech start-up programme in terms of
impact.
After it was launched in April 2013, the 10,000
Start-ups programme has received over 9,000applications from various parts of the country and about
500 tech start-ups have been shortlisted in 2 phases.
These start-ups have got the opportunity to pitch to more
than 30+ partners of the programme including leading
accelerators, angel investor networks and venture
capital firms.
These firms received access to a pool of mentors including
technology leaders, successful founders, domain experts,
angel investors, etc. Beyond this, they also received
platforms to meet large enterprises, system integrators
and strategic who could potentially be customers and
strategic partners. With the support of the Government
of Karnataka, NASSCOM also established a co-working
facility called Start-up Warehouse exclusively for tech
start-ups right in the heart of the city.
Through various initiatives, the programme has been
able to successfully impact 150+ technology start-ups
out of the 500+ who have been shortlisted under the
programme. These fi rms have raised funds, got into
acceleration programmes, found customers and on-
boarded mentors through the programme.
We look forward to scaling this number drastically in
the days to come!
Illustrative list of VCs/PEs and angel investors/ networks
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Accel Partners Freemont Partners Norwest Venture Partners Abhishek Goyal GSF SuperAngels Ratan Tata
Ascent Capital Google CapitalOjas VenturePartner
Amit RanjanIndian AngelNetwork
Ravi Gururaj
Avalon Ventures Greylock Partners Omidyar Network Anand Ladsaria Kanwaljit S Bombra Ravi Kiran
Bertelsman Helion Venture Partners Qualcomm Ventures Anand Lunia Kishore Ganji Ravi Trivedi
Bessemer VenturePartners
IDG Ventures Ru-Net Holdings Angel Prime Krishna Motukuri Rehan Yar Khan
Bharti Softbank IndoUS Venture Partners Saama Capital Anupam Mittal Krishnan Ganesh Sachin Bansal
Blackrock Intel Capital SAIF Partners Bhupen Shah Manav Garg Samir Sood
Blume Ventures InterWest Partners Sequoia Capita Bimal Shah Manoj Menon Sasha Mirchandani
CDC Group Inventus Capital Partners Softbank Binny Bansal Mumbai Angels Sharad Sharma
Cisco Ventures Kalaari Capital Steadview Capital Calcutta Angels Murali Venkat Rao Sunil Kalra
Clear Stone Venture Partners
KITVEN Funds Telstra Ventures Ccube Angels Naveen Tewari Umang Kumar
Draper FisherJurvetson
Lightspeed VenturePartners
Tiger Global Chennai Angels Nitin Aggarwal Urrshila Kerkar
eBay Matrix Partners Unilazer Ventures Deep Kalra Nitin Singhal Venkat Vallabhaneni
Epiphany Ventures Mayfield Fund Vertex VentureHoldings
Dinesh Aggarwal Rajan Anandan Vikash Taneja
Fidelity GrowthPartners India
Nexus VenturePartners
WaldenInternational
GirishMathrubootham
Rajesh Sawhney Vishal Gondal
VCs/PEs Angel Investors/Networks
Illustrative list of incubators/accelerators and support networks/event platforms
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Incubators/Accelerators
5ideas Kyron Target Accelerator Program In50hrs
91Spring Board MICA Incubator: MICA-EDC TBI – BITS Pilani LetsVenture
BitChemy Ventures Microsoft Ventures TBI – IIT DelhiMicrosoft BizSpark IndiaStartup Challenge
Boot Up Factory10,000 Startups:NASSCOM
Manipal Institute of TechnologyInnovation Centre
NASSCOM Product Conclave/Emerge Awards
CatalyzerNational Design BusinessIncubator (NDBI) - NID Ahmedabad
TBI - NDRI Karnal NEN
CIE - IIIT Hyderabad NSRCEL (IIM Bangalore) TBI – VIT NextBigWhat
CIIE - IIM A PayPal Incubator The Fabric SME Joinup
Citrix Start-up Accelerator PitneyBowes Accelerator Program Tlabs - Times Internet Group StartDunia
Freemont Partners RTBI - IIT M TSC (The Startup Centre) STARTOHOLICS
Growth Story SAP Startup Focus Veddis Advisors Startup Festival
GSF SEED – MDI Venture Centre Startup Weekend
Health StartSIDBI Innovation & IncubationCentre - IIT Kanpur
Venture Nursery Startups Unplugged
IIITB InnovationCentre - IIIT Bangalore
SINE - IIT Bombay Villgro Startups.in
Indian Angel NetworkIncubator
Startup OasisWadhwani Center forEntrepreneurship Development- ISB Hyderabad
TIE
Khosla Labs Start-up Village Zone Startups Yourstory
Event PlatformsSupport Networks/
pp / p
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DisclaimerMethodology and assumptions for the ‘Analysis of Top 20 VCs/
PEs’ in Page No.43
1) This analysis is based on publicly available deals done by VCs/
PEs. It is not exhaustive in nature as this list may not includesome top investors as all their deals may not be available in
public domain
2) For ease of analysis, in deals involving multiple investors, the total
deal amount is split equally among investors. In deals where the
amount invested by each investor is available from public sources,
then in such cases the amount is allocated accordingly
The slides including names and logos of Start-ups/VCs/PEs/
Angel Investors/Angel Networks/Incubators/Accelerators/Event
Platforms/Support Networks/Academic/Training Programs/
Banks/Financial Institutions and pictures of start-ups Founders/Co-Founders/CEOs are illustrative in nature, and the logos,
trademarks and pictures are owned by respective companies
The M&A deal values included in slide No.53 are sourced
from publicly available sources. In some cases this may be an
approximate value (not the actual deal value) as at times the deal
value available in public domain is based on analyst’s or industry
leader’s estimates
List of Sources
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Zinnov Repository Public Sources
NASSCOM 10,000 Star t-up Da tabase
Angel Lis t
Y ours tory .in
Techcrunch/Crunchbase
Ven ture Intelligence
S tar t-up Websites
V C Websi tes
Angel Network s Websites
Media Ar ticles
Zinnov produc t/digitalstart-upda tabase
Primary
Interactions
35+Technology produc tfirms/s tar t-ups
Interactionswith VC &angelinves tors
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